Are you financially ready for retirement? According to CNBC, based on findings from the Natixis Global Retirement Index,:
However, there are steps you can take to ensure you have the financial security needed to live well and pay for retirement including funding senior living.
Creating a financial plan that incorporates every phase of life, from the young family stage to funding senior living, is essential for avoiding financial mishaps and reaching retirement with enough money to live the way you want to live. Even if you choose not to get married or have children, having a plan means having financial security when you need it most.
The best time to create a financial plan is as early as possible, but even starting one later in life can be a great asset for funding senior living. Consulting with a financial advisor can be beneficial, but if you want to go it alone try these tips:
If you, like many, let your monthly bills dictate your budget, it may be time to formalize your budget. Doing so will help you monitor where you’re spending money and where to cut back on discretionary spending. For example, could you forgo that daily Starbucks triple, venti, soy, no foam latte a few mornings a week or take a bag lunch to work instead of dining out? Can you substitute YouTube videos for that pricey yoga class?
A budget can often be eye opening. Case in point, a $4 coffee each morning may not seem like much until you multiply it times 30 days and realize that’s $120 a month and over a year, $1,440!
Budgeting doesn’t mean giving up all the things you love, it just means finding the right balance now so funding senior living is actually possible. The AARP’s home budget calculator makes budgeting quick and easy.
Goals and budgets should not be cast in concrete, rather they should be reassessed regularly to accommodate life changes. Some of the many factors to consider are:
Explore more options for keeping your financial plan in shape from Nasdaq’s Financial Planning Tips for 50-Somethings.
It’s never to late to plan for retirement. The first step to funding senior living is setting a long-term financial plan. Establishing a budget for yourself or family, which includes financial goals, and periodically reassessing the budget, will serve you well in reaching the retirement lifestyle you want to live.